Heat network explained for businesses
Direct answer
A heat network, also called district heating, is a system of insulated underground pipes that carries hot water from a central heat source to buildings, for space heating and hot tap water. Inside the building a heat interface unit transfers the heat to the building's own installation, so a gas boiler is no longer needed. In the Netherlands heat networks are an alternative to heating with natural gas.
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Heat network explained: scattered information versus Energy Intelligence
The Netherlands is moving away from heating with natural gas, step by step. In densely built districts and on business parks, a collective solution is often more logical than a heat pump per building. Municipalities lead this process and designate areas in their heat plans where a collective network is promising. A property owner may therefore receive a letter announcing that the district is being prepared for connection. Anyone who wants a say about their own building first needs to understand how such a network actually works.
- A heat interface unit replaces the gas boiler; a heat meter records consumption and the cooled water returns to the source through a return pipe.
- The heat comes from varied sources: residual heat from industry or waste incineration, geothermal energy, aquathermal energy, biomass or electric boilers. The mix differs per network.
- Each network has one supplier; the Dutch regulator ACM supervises heat suppliers, including tariffs and security of supply.
Insight
Traditional approach
Information is scattered across portals, documents, invoices or separate spreadsheets.
Modern approach
Data, context and interpretation are brought together into a clear decision picture.
Decision-making
Traditional approach
Choices are made based on averages, assumptions or occasional analyses.
Modern approach
Scenarios, KPIs and current measurement data make the trade-off more concrete and repeatable.
Follow-up
Traditional approach
Actions often stay non-committal or disappear into separate reports.
Modern approach
Follow-up actions, monitoring and reporting are linked to the same energy data.
How does a heat network work?
A heat network consists of two insulated pipes: a supply pipe carrying hot water and a return pipe carrying cooled water. A central source, for example a factory with residual heat or a geothermal well, heats the water. Pumps push it through the district to the connected buildings. Each building has a heat interface unit: a compact device with a heat exchanger that transfers the heat to the building's own radiators or underfloor heating and to the tap water. The network water therefore never comes out of your tap; only the heat is transferred. A heat meter records how much heat you use, usually in gigajoules. The cooled water flows back to the source and is heated again.
- A supply pipe delivers hot water, a return pipe carries cooled water back.
- The heat interface unit with heat exchanger replaces the gas boiler.
- The network water stays separated from your own tap and heating water.
- A heat meter records the number of gigajoules consumed.
Which heat sources and temperature levels exist?
The heat can come from many sources. Many existing Dutch networks use residual heat from industry, waste incineration or power plants. Newer sources are geothermal energy, heat from deep underground, and aquathermal energy, heat from surface water or waste water. Biomass boilers and electric boilers also feed heat networks; the latter convert electricity into heat, often at moments with abundant renewable generation. Networks differ in temperature level. A high temperature network delivers water that is directly hot enough for older buildings and for hot tap water. Medium and low temperature networks operate with cooler supply water. They suit well insulated buildings and often require additional heating for tap water, for example with a booster heat pump. The temperature level therefore partly determines which buildings can connect without modifications.
- Residual heat from industry and waste incineration is currently a common source.
- Geothermal and aquathermal energy are emerging sustainable sources.
- Electric boilers convert electricity into heat for the network.
- High temperature suits older buildings, low temperature requires good insulation.
- Low temperature networks often need additional heating for hot tap water.
What role does the heat network play in the heat transition?
In the Dutch heat transition, every municipality looks for an alternative to natural gas for each district. Heat networks are mainly considered where many buildings stand close together, because one collective source can then serve many properties at once. The municipality leads this process and records in its heat plans which districts qualify. For a building owner, connecting means: the gas boiler goes, a heat interface unit is installed, and cooking usually becomes electric once the gas connection is removed. Connecting also means joining a collective: each network has one supplier and you cannot switch. That is why the regulator ACM supervises heat suppliers, including tariffs and security of supply. The new Collective Heat Act, adopted by the Dutch parliament at the end of 2025, renews this framework step by step in the coming years, including revised tariff regulation.
- Mainly promising in densely built areas with high heat demand per hectare.
- The municipality determines in its heat plans where a network is considered.
- Connecting means: a heat interface unit instead of a gas boiler, usually electric cooking.
- One supplier per network, supervised by the regulator ACM.
- The Collective Heat Act has been adopted and renews the rules step by step.
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